Canadian pension group in deal for Wagon Wheels maker Burton's Biscuits

The British biscuit maker behind Wagon Wheels and Cadbury Fingers has been sold to Canada’s biggest professional pension plan.

Burton’s Biscuit Company, based in St Albans, Hertfordshire, has been bought by the Ontario Teachers’ Pension Plan for an undisclosed sum.

The snackmaker – which also makes Jammie Dodgers, right – was bought from Canadian Imperial Bank of Commerce and Apollo Global Management, a private equity firm.

‘We look forward to supporting Burton’s outstanding management team to grow the business in the UK and further into overseas markets,’ said Jo Taylor, head of Teachers’ Pension Plan’s London office, adding that it was eyeing further ‘strategic acquisitions’. Burton’s employs more than 2,000 in Blackpool, Edinburgh and Llantarnam, South Wales, and operates a chocolate refinery in Moreton.

British sweets and chocolate have found favour among investors looking to profit from sweet-toothed customers in emerging markets such as India, China and the Middle East, where rising incomes have contributed to changing dietary habits.

More...

For their part, Brits retain their taste for chocolate and chocolate biscuits, with sales expected to increase by 13 per cent between 2012 and 2017 according to a study from Euromonitor, a market research firm. However, it warned that increasingly unpredictable weather patterns brought on by climate change could cause greater droughts and flooding, and were expected to lead to higher commodity prices.

The acquisition of a British confectioner follows the controversial takeover bid for Cadbury from US food giant Kraft in 2009, now known as Mondelez International.

Burton’s has retained the licensing rights to produce Cadbury Fingers since the completion of that deal.

The Ontario fund has been an enthusiastic investor in the UK, having already invested in Bristol Airport, High Speed One and Camelot, the operator of the National Lottery.